An exploratory study of some of the determinants of managements succession planning in family businesses

dc.contributor.author

Van Der Merwe, Stephanus

en_US

dc.date.accessioned

2010-08-04T15:33:32Z

dc.date.available

2010-08-04T15:33:32Z

dc.date.issued

2009

en_US

dc.identifier.citation

VAN DER MERWE, S. 2009. An exploratory study of some of the determinants of managements succession planning in family businesses. Management Dynamics.

en_US

dc.identifier.issn

1019-567X

dc.identifier.uri

http://hdl.handle.net/10394/3239

dc.description.abstract

The objective of this study was to assess the determinants of the readiness of the senior generation owner-managers to finally transfer the management and control of the family business to the younger generation. Data from 504 questionnaires linked to 81 family businesses were collected and analysed. An Oblimin oblique rotation was carried out on the principal components of the exploratory factor analysis. Five factors with eigen-values greater than one, explaining 62.64 per cent of the variance, were extracted. These five factors describing the theoretical dimensions of the dependent variable were: the senior generation owner-manager’s readiness to let go, and the independent variables of retirement planning, perceived suitability of the successor, estate planning, and the perceived liquidity of the business after the transfer. No significant practical differences relating to these five factors could be found between the perceptions of male and female respondents, the senior and younger generation family members or family members involved in medium-sized or small businesses. Practical recommendations are suggested to ensure a smooth final transfer of the management and control of the business to the younger generation family members

dc.publisher

Southern African Institute for Management Scientists

dc.title

An exploratory study of some of the determinants of managements succession planning in family businesses